Snyder urges divided Legislature to approve new vehicle fees

With several hundred union protesters chanting outside in the cold night air, Gov. Rick Snyder came to the Capitol on Wednesday to deliver what he hoped would be a warm, conciliatory State of the State Address focusing on new initiatives — particularly higher motorist fees for road improvements — rather than rehashing the Legislature’s tumultuous lame-duck session in December.

Snyder called for a $1.2 billion annual boost in taxes and fees to pay for much-needed road improvements that would provide long-term savings for taxpayers. The average increase in vehicle registration fees would be $120, while the impact on motorists of a proposed switch in the tax on gasoline from the retail to wholesale level is unclear.

The Snyder plan would also allow individual counties to levy vehicle fees to finance local road projects.

“It’s time to do something, folks. We need to invest more in our roads,” the governor said, asserting that higher fees would be offset by fewer potholes and auto repair bills. “This is not about costing us money. It is about saving us money and building for the future.”

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He appealed to legislators — all of whom will be up for re-election in 2014, as will Snyder — to put partisan and political motivations aside when contemplating a new road funding system.

“This is a no-brainer,” he added at the conclusion of his third State of the State speech. “We … can use some common sense solutions.”

But the governor will have trouble convincing his Republican legislative allies to raise revenues, and he will have to console Democratic lawmakers still seething from a lame-duck session that produced a right-to-work law — the primary reason for the outdoor protests that could be heard in the House chambers as Snyder prepared to deliver his remarks.

In the Macomb County delegation, the highly charged partisan divide was palpable.

Newly elected state Rep. Henry Yanez, a Sterling Heights Democrat, said the regressive vehicle fees would hit the middle class disproportionately at a time when Snyder has pushed through an “anti-worker” agenda over the past two years.

“These speeches are full of grand and big ideas, but the question is, who’s going to pay for those ideas? The middle class families I represent in Sterling Heights have been hit hard by years of recession,” said Yanez, a longtime firefighter. “Our middle class families are not an ATM machine for the governor. If … they’re looking for money, I know where they can find it.”

In seeking common ground, Snyder said December was a “divisive period” and “I wish it hadn’t happened.” But he never mentioned right-to-work, which allows workers in a union shop to continue enjoying the pay and benefits negotiated by labor representatives without paying union dues.

Democratic Rep. Jon Switalski of Warren said Snyder’s “extremist agenda” has included the right-to-work law, a $1.7 billion tax cut for businesses, cuts to K-12 education, an elimination of the $600 child tax credit, and a tax on retiree income.

Rep. Harold Haugh, a Roseville Democrat, said Snyder’s roads plan deserves a lot of scrutiny, including an analysis of what impact it might have on auto sales.

“Until he lays out specifics, he’s not going to get my vote,” Haugh said. “The … wounds run deep.”

In contrast, GOP Rep. Pete Lund of Shelby Township had this advice for the embittered Democrats: “Get over it.”

“I thought he was extremely nice about it (offering peace). He offered his hand to the Democrats and they sat on their hands and refused to clap.”

Lund said a road repair solution is needed but House Republicans have to consider that a gas tax hike gives a big advantage to owners of hybrid and electric vehicles, while the registration fee will hit hard those families who own several cars and trucks, especially in agricultural areas.

“If a person owns five vehicles but only drives one at a time on the roads, what’s a fair way of taxing those people?” asked Lund, the House majority whip.

Rep. Tony Folini, a Harrison Township Republican, said the key to winning legislative support for the plan will be to emphasize that Michigan roads and highways are “horribly underfunded” and the Snyder proposal will “spend the new money wisely.” The state’s 19-cents-per-gallon gas tax has not been raised in nearly 16 years.

“I thought it was a passionate speech,” added Forlini. “I heard a ton more energy coming out of the governor compared to last year. He spent this year talking about successes and … accomplishments for Michigan taxpayers.”

Snyder provided few details in his nearly hour-long speech, which also touched on job training, education, reforming Michigan’s no-fault auto insurance law, improving programs for veterans and the mentally ill, and making absentee voting an option for all voters.